13 -A beauty salon presents the following data: • Monthly rent: R$6,000.00; Salaries: R$12,000.00 IPTU, condominium: R$1800.00; Electricity, gas, telephone: R$ 1500.00 Sales commission: 5%; Invoicing taxes: 15% Average service ticket: R$ 120.00. What is the monthly operating break-even point? *
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Ignore Break even point and calculate total variable cost?
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- A product sells for ₱80 per unit and has a contribution margin of ₱35 per unit. Monthly fixed expenses total ₱50,000. The firm obtained a loan amounting to ₱50,000 with an interest rate of 12% per annum. The firm desires a profit after tax of ₱75,000 for the month. Tax rate is 25%. How many units must be sold for the month? a. 3,572 b. 4,300 c. 4,458 d. 5,000 e. 2,189A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. In order for it to be at operational breakeven, the daily rate P for a 40% occupancy rate must be: a) $124.25 b) $114.25 c) $131.10 d) $118.10A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed expenses total ₱350,000. The firm obtained a loan amounting to ₱250,000 with an interest rate of 11% per annum. The firm desires a profit after tax of ₱275,000 for the month. Tax rate is 25%. How many units must be sold for the month? a. 15,926 b. 15,977 c. 11,406 d. 13,531 e. 16,537 f. 4,300
- Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 128.00 per service Variable costs 90.00 per service Fixed costs 124,982 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: How many cleaning services must Cruse Cleaning sell in a year to break even? How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $34,086 after taxes?What is the monthly break-even point of a restaurant that sells meals at R$60.00 per kilo, with the following costs: R$12.00 of inputs/kg; BRL 7500.00 from employees; 12% commissions; 10% tax on billing; R$ 10,000.00 of rent; R$ 3500.00 for electricity, water and telephone bills.; R$ 1000.00 for laundry; BRL 1500.00 for cleaning. a) 676 KG b) 811 KG c) 821 KG d) 694 KGMacy's Design has daily sales of $42,000. The financial management team has determined that a lockbox would reduce the collection time by 1.2 days. Assuming the company can earn 7.9 percent interest per year, what are the savings from the lockbox? (Round answer to 2 decimal places, e.g. 12.25.)
- A product sells for ₱100 per unit and has a contribution margin of ₱45 per unit. Monthly fixed expenses total ₱350,000. The firm obtained a loan amounting to ₱250,000 with an interest rate of 11% per annum. The firm desires a profit after tax of ₱275,000 for the month. Tax rate is 25%. How many units must be sold for the month?X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000. The variable cost is $200 per unit. The current credit period is 1 month. The company is considering a proposal to increase the credit period. Fixed cost will increase by $60,000 on account of increase in sales beyond 25% of present level. The company plans a pre-tax return of 15% on investment in receivables. Requirements: 1. Calculate the most paying credit policy for the company. 2. Analyze the results in detail.HOMEWORK FOR WEEK 9 Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each latch has variable operating costs of $3.50. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 30,000 latches per year and is taxed at a rate of 40%. Calculate Carolina Fastener’s operating breakeven point. On the basis of the firm’s current sales of 30,000 units per year and its interest and preferred dividend costs, calculate its EBIT and earnings available for common. Calculate the firm’s degree of operating leverage (DOL). Calculate the firm’s degree of financial leverage (DFL). Calculate the firm’s degree of total leverage (DTL). Carolina Fastener has entered into a contract to produce and sell an additional 15,000 latches in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common. Check your work…
- X Ltd. has annual sales of 10,000 units at $300 per unit. The annual fixed costs amount to $300,000. The variable cost is $200 per unit. The current credit period is 1 month. The company is considering a proposal to increase the credit period. Fixed cost will increase by $60,000 on account of increase in sales beyond 25% of present level. The company plans a pre-tax return of 15% on investment in receivables. Requirements: 1. You are required to calculate the most paying credit policy for the company. 2. Breifly describe the process and provide the analysis of the results.HOMEWORK FOR WEEK 9 Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each latch has variable operating costs of $3.50. Fixed operating costs are $50,000 per year. The firm pays $13,000 interest and preferred dividends of $7,000 per year. At this point, the firm is selling 30,000 latches per year and is taxed at a rate of 40%. Therefore, the CF's operating break even point (BEP) is 20,000 units. Therefore, the EBIT is $25,000 and Earnings available for common equity holders is $200. Therefore, the degree of operating leverage (DOL) is 3 times. Calculate the firm’s degree of financial leverage (DFL). Calculate the firm’s degree of total leverage (DTL). Carolina Fastener has entered into a contract to produce and sell an additional 15,000 latches in the coming year. Use the DOL, DFL, and DTL to predict and calculate the changes in EBIT and earnings available for common. Check your work by a simple calculation of Carolina Fastener’s EBIT and…Question 2 The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer. a) compute the break -even point in meals and volume in dollars. b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000 c) Assume that fixed costs increase to RM30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?